A tool designed for building professionals to help prepare top level cost plans, provide early cost advice to clients and benchmark costs for both commercial and residential buildings
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LoginPublished: 13/03/2023
The early estimate for the BCIS All-in Tender Price Index (TPI) shows a 1.1% increase between 4Q2022 and 1Q2023.
The resultant 1Q2023 TPI figure shows an increase of 8.6% in the year from 1Q2022¹.
The estimate is the consensus of the BCIS TPI Panel² based on the analysed Delphi survey results. Therefore it doesn’t necessarily represent the views of individual participants.
The range of responses reported on the tender price movement question was between 0.0% and 1.5%. The median stood at 1.0% and all panellists agreed on it as a consensus figure for 1Q2023.
The panel reported Overheads and Profit at 5.5%, slightly up from 5.2% last quarter.
During the meeting, panel members agreed that contractors are keener to tender when compared to this time last year and they are now looking to fill 2024 order books. Several panelists commented that contractors are more willing to tender in a single stage competition, which was not the case previously. As can be seen from the table below, increased eagerness to tender has been reported for three consecutive quarters.
The panel highlighted growing staff and labour availability issues, whereas overall materials’ inflation and supply issues continue to soften. There are some exceptions, for example, plasterboard and insulation recorded high price increases. MEP imports are reported to cause issues in lead-times, while there is less price volatility in domestically produced materials. Panel members reported higher price increases in MEP returns in 1Q2023, compared to the previous quarter.
¹ Note: the BCIS TPI Panel estimate has been applied to the previous quarter index and rounded to the nearest whole number for publication.
² The BCIS TPI Panel. BCIS has recruited a panel of practising cost consultants from firms involved in multiple tenders in each quarter, to provide an early estimate of tender price movement in the latest quarter, based on a panel (Delphi) survey approach. For further details see: BCIS Tender Price Index Panel.
Basis of BCIS Tender Price Index. TPI figures prior to 4th quarter 2018 are based on project indices, generally single stage, traditional procurement, average value < £5million, (minimum £100,000, no maximum). Excludes M+E and other specialist trades, e.g., facades. BCIS has assumed this reflects market projects let on single stage Design and Build and Specification and Drawings. Indices are normalised for location, size, and procurement. Percentage changes are mid-quarter to mid-quarter.
Adam Reeve, Calfordseaden
David Happell, Exigere
Don Patterson, Equals Consulting
Gavin Margatroyd, Gardiner & Theobald
Ian Aldous, Mace Group
James Garner, Gleeds
Ben Craven, Turner & Townsend
Mark Lacey, Alinea
Max Wilkes, F+G
Nicola Sharkey, Gleeds
Nigel Hawes, Exigere
Peter Maguire, WT Partnership
Rachel Coleman, Alinea
Richard Hill, Currie and Brown
Roger Hogg, Rider Levett Bucknall
Simon Cash, Artelia
Simon Rawlinson, Arcadis
Steve Waltho, Turner & Townsend
Stuart Wigley, Baily Garner
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A tool designed for building professionals to help prepare top level cost plans, provide early cost advice to clients and benchmark costs for both commercial and residential buildings